DIGITIMES released a report today highlighting Apple’s efforts to build a supply chain entirely of Chinese manufacturers to make iPhones specifically for the Chinese market. The assessment is based on recent moves by Apple suppliers luxshare and lens technology to acquire metal chassis factories operated by Taiwanese manufacturers in China.

news sources said that as the largest assembly company of AirPods, Li Xin precision has recently joined the iPhone assembly industry chain, and acquired the Chinese mainland’s low-end iPhone production line from Taiwan weft. In order to further expand its influence in the iPhone supply chain, Hitachi precision has also been keen to buy factories from Taiwanese companies in the iPhone supply chain.

it is reported that Taiwan’s metal chassis manufacturer Ke Cheng technology had planned to sell 30% of its Chinese factory shares to Lixun precision. However, according to DIGITIMES sources, negotiations on the deal were suspended after the company started negotiations with Kaisheng Holdings Co., a subsidiary of Hewlett Packard united technology, on the acquisition of its metal chassis plant in China.

according to the source, it was reported that Kecheng technology was still negotiating with lens technology, a Chinese mobile phone cover glass manufacturer, on the sale of its Suzhou plant to Chinese manufacturers, but the deal met with obstacles in the purchase price.

the move is seen as part of Apple’s efforts to recruit more Chinese suppliers who can provide cheaper iPhone parts to the Chinese market. Coupled with lingering pressure from trade tensions, such deals are increasingly seen as part of Apple’s plans to diversify its overseas production base, as evidenced by recent reports that several Apple suppliers are actively seeking to set up production facilities in India.